Frequently asked questions about the VSME

VSME is a European reporting standard created especially for small and medium-sized enterprises. It helps you show in a structured way what your company is doing in terms of sustainability. Think about carbon emissions, energy consumption, working conditions and governance. 

The VSME is deliberately much simpler than the CSRD reporting requirement for large companies. The aim is for SMEs to be able to demonstrate how sustainably they operate, without being immediately confronted with the full complexity of large corporate reporting. 

VSME stands for Voluntary Sustainability Reporting Standards for non-listed SMEs. In Dutch: voluntary sustainability reporting standards for non-listed SMEs. The abbreviation actually tells you what it is: it is voluntary, it is about sustainability, and it is specifically designed for SMEs that are not listed.  

CSRD is the mandatory sustainability reporting for large companies (more than 1,000 employees or listed on the stock exchange). These companies have to report extensively on their sustainability performance. VSME is the voluntary variant for SMEs. It is much more compact and straightforward, but is in line with the same European standards. This allows SMEs to answer questions from large customers without having to go straight into the full CSRD complexity.  

Think of VSME as the 'SME-friendly version' of sustainability reporting.

No, VSME is not mandatory. As an SME, you are unlikely to fall under the CSRD reporting requirement. But many SMEs do have to deal with sustainability reporting indirectly. Large customers who do have to report are increasingly asking for sustainability information from their suppliers. Those suppliers are often SMEs like you. By working proactively with VSME, you can respond professionally.  

So it is not mandatory, but it can be the key to retaining customers and capturing new opportunities. 

Your big clients are probably required to report on the sustainability of their entire value chain including their suppliers. That's you. So they need sustainability information from you to meet their own reporting obligations. By using the VSME, you give them structured, reliable information in line with European standards.  The alternative? Different clients send you different questionnaires, and you have to explain (and figure out) what your company does over and over again. The VSME avoids that extra administrative burden. 

Access to finance: Banks and investors are increasingly looking at sustainability when providing finance. With VSME reporting, you demonstrate that you are a future-proof partner. 

Maintain and strengthen customer relationships: You proactively meet the expectations of major customers and position yourself as a reliable, professional supplier. 

Competitive advantage: In tenders and contract negotiations, you will outperform competitors who do not have this in order. 

Insight into your own business: You will gain clarity on where you stand and where opportunities exist for cost savings or improvements. 

No, VSME is not a certification like ISO standards. It is a format in which you share information about your sustainability performance. 

So you do not have to undergo an external audit to become "VSME-certified" - there is no such term. What matters is that you use the VSME standard to communicate clearly and reliably what your company is doing in terms of sustainability 

No problem, the VSME is precisely designed for companies starting out with sustainability reporting. You don't have to have everything perfectly in order before you start. 

Start with the VSME's basic module. This asks for key points such as your energy consumption, key sustainability risks and what you are already doing on environmental and human resources policy. You probably already have a lot of this information.The important thing is to map it out in a structured way.  

The most important thing is honesty: state where you stand, what you know and what you don't know yet. Clients and financiers value transparency more than perfection. 

The VSME has two modules: 

• Basic module: this is the basis for all companies. The basic module covers key ESG topics such as energy consumption, emissions, staff composition and anti-corruption. Ideal if you are looking for a streamlined approach to sustainability reporting. 

• Comprehensive module: this builds on the basic module with more extensive reporting on corporate strategy, climate targets, social impact and governance. The comprehensive module is suitable for companies that want more depth and, for example, want to convince investors or banks of their sustainability efforts. 

Good to know: you use the basic module anyway. The comprehensive module is an extension of the basic module, not a replacement.

Not necessarily. You can start with an Excel sheet or Word document to gather and organise your information according to the VSME structure. The European Financial Reporting Advisory Group  (EFRAG) has a Excel template that you can get started with.  
 

For larger companies or if you work with multiple clients who want regular updates, a sustainability tool can be useful. Moreover, these tools can save you a lot of time,  they help you collect data automatically and generate reports. Want to know which tool best suits your situation? Check out our tool guide.  

No, the VSME does not require a full dual materiality analysis. This is one of the main simplifications compared to the CSRD. 

You do need to think about which sustainability topics are most relevant to your business and sector. But this can be done in a much more practical way: which environmental and social aspects are important for your customers, suppliers and your own business risks? 

The VSME provides guidance to identify these relevant themes without the complex process of a formal materiality analysis. 

For the basic module, you can expect 1-3 working days, depending on how well organised you are and what dates you already have available. 
 

The first time takes more time because you have to gather information and understand what is being asked. Subsequent years are faster because you know the process and have systems in place. 

 
Divide the work: let different departments (HR, procurement) provide their own data. That way it won't be a one-man job and you'll get better quality information.

No, it is not mandatory. VSME is voluntary reporting, so there are no legal requirements for external audit. 

However, it can be valuable to have your initial report checked by an accountant or sustainability consultant. They can help you with the quality of your data and make sure your report looks professional and reliable. 

Some large customers may well ask for external validation. Check what your specific clients expect.

It depends on your clients and your own ambitions. VSME is voluntary, so you decide the frequency. Most clients do expect annual updates, especially since their own CSRD reports are also annual. If you use VSME to meet chain requests, annual reporting is practically the standard. The advantage of annual reporting: you keep your systems up-to-date and can measure your progress. That increases your credibility.

EFRAG (European Financial Reporting Advisory Group) is the European organisation that develops sustainability reporting standards, including the VSME. 

 
For you as an SME, this means that VSME is not just a commercial standard, but an official European directive. This gives confidence: you are investing in a system that is future-proof and recognised by all major companies. 

 
EFRAG also ensures that the VSME stays in line with developments in European legislation. So you do not have to worry that you will soon have to start all over again with a different standard.